It is always great to have a backup plan, be it for your education, career, or finances. But what about a fallback plan for health insurance? While health insurance itself is a backup plan for unexpected medical emergencies and the financial burden that accompanies them, you might want to consider a super top up plan.
Since health care costs have constantly been surging for the past few years, you cannot predict how much medical coverage will or will not be sufficient. For example, if a basic surgery costs Rs 5 lakhs today, it might double in the next two years, making your health policy inadequate. But this is what a super top up plan is designed for, providing financial aid if your existing plan isn’t enough to cover hospital bills or other costs.
Now that we have a basic understanding of super top-up health insurance, it’s time to dive in deeper, so keep on reading!
How Does a Super Top Up Plan Work?
As discussed earlier, a super top up plan acts as a financial cushion against situations where medical expenses might exceed the sum insured of your standard health care policy. For instance, say you have a basic health plan with coverage worth Rs 10 lakhs, but the total amount you need to pay is Rs 16 lakhs. In such cases, you can use the super top up health insurance to cover the remaining costs, but there’s a catch.
When you buy a super top up plan, the insurance provider will determine a deductible with your agreement, which is the amount you need to pay before utilizing the booster policy. However, this deductible entirely depends on the premium cost and the type of plan you opt for, and it can be anywhere between one lakh to five lakhs or more.
Here is a better illustration of how super top-up health insurance works:
|
Sum Insured |
15 Lakhs |
|
Deductible |
5 Lakhs |
|
Total Claim Amount |
10 Lakhs |
|
Your Contribution |
5 Lakhs |
|
Insurer’s Contribution |
5 Lakhs |
As per the example illustrated above, you will be left with a sum insured worth Rs 5 lakhs after paying the deductible and claiming the policy. However, it is essential to choose a deductible you can afford as arranging lakhs of rupees at the time of an emergency can be burdensome.
Features to Consider When Buying a Super Top Up Plan
When buying a super top up plan, make sure you keep the following features in mind:
High Coverage – It is crucial to choose a plan that offers coverage for a range of medical expenses such as pre & post-hospitalization costs, ambulance cover, daycare treatments, daily allowances, etcetera.
Affordable Deductible & Premium – Choosing a super top up plan you cannot afford beats the entire purpose of buying one in the first place. Moreover, the deductible and premium go hand in hand. The lower the deductible, the higher the premium cost. So, be sure to choose wisely.
Co-Payment Requirement – Most super top-up policies require co-payments at the time of claim; therefore, ensure you select a plan with the minimum or zero co-payment requirement.
Cashless Health Care – When buying a super top up plan, examine the list of hospitals that fall under the insurer’s network. Additionally, check if your preferred hospital or doctor is covered, so you can easily make use of the cashless claim feature.
Additional Features – Policy buyers should go for top-up plans with additional features so you can make the most of your investment. Look for some added features like no waiting period, cumulative bonuses, tax returns, free annual health checkups, no age restrictions, etcetera.
If you plan on investing in a super top up plan, it is imperative to go with trusted and well-established insurance companies such as Care Health Insurance. This step is crucial, so you get the best booster policies at affordable deductibles and premiums, plus high-quality customer service. One last thing, make sure you read the policy wordings, terms & conditions, and exclusions carefully. You can even go through the latest IRDAI guidelines on exclusions for health insurance to make an informed decision.
